R01 Legal Persons Flashcards
(44 cards)
What are the requirements for a PLC
50k share capital, two shareholders, two directors
What are the benefits of an LTD?
The company is responsible for it’s own debts and legally the owners cannot be held liable
What is ordinary power of attorney?
One person acts as an attorney for another.
What are the two types of lasting power of attorney?
For financial decisions and Health and care
What are the three types of non-disclosure and what happens in each?
Reasonable (claim paid in full), Careless (the claim is reviewed), deliberate (the contract is void)
As joint tenants, what happens on the death of a tenant?
Each tenant owns 100% and it passes fully to the other tenant
As tenants in common, what happens on the death of a tenant?
Each person owns a set percentage of the property, which is passed on through their will
What is a free hold ownership?
Ownership of both the land and the building on top of it
What is leasehold?
When somebody owns the building but not the land . They will have to pay ground rent
What is shared ownership agreement?
When the client buys a share in the property with the remainder being bought by a housing association
What are some conditions of the help to buy scheme?
The property much be a new build of up to 600k, it cannot be sublet and it must be the sole property the client owns
What are the variables for a will to be valid?
It must be in writing, it must be signed and it must be witnessed by 2x people
What is the order of events upon death of a client?
Executor lists liabilities and assets, IHT is paid, Grant of probate, Estate passed on
What happens if a client has no will, but they have a spouse and children?
Spouse inherits personal effects (cars etc). £270k and half of anything above. Children inherit the other half
What happens if somebody dies with no will and no family?
Crown takes all. Seized by Govt
What are the three members of a trust?
The settlor (put the assets in the trust), trustees (look after the assets), beneficiary (the people who get the benefit of the trust)
What is an absolute or bare trust?
Where capital is held in pre-designated percentages. Once established, it cannot be varied. Over 18s can demand the capital whenever they want
What is an interest in possession trust?
Has a life tenant (beneficiary) who is entitled to receive the income generated by the trust
What is a power of appointment trust?
The trustees can choose the beneficiaries by selecting from a group of them
What is a discretionary trust
The trustees have discretion over which beneficiary gets the money/interest
What is an express trust?
A formal trust where there is a clear intention of creating a trust (trust deed)
What is an implied trust?
When a trust is created by implied action. (Look after this for my kids)
What are three elements to make a trust valid?
The Words, subject and object must be certain within a trust
When can you end a trust?
When all beneficiaries are over 18 and have been confirmed
